NEW YORK, December 31, 2025, 3:56 PM ET — Regular session
- Reddit shares were down about 1.5% at $229.89 in late Wednesday trading.
- A regulatory filing showed Reddit’s CTO sold 14,000 shares last week under a pre-arranged trading plan. 2
- Needham reiterated a Buy rating and said Reddit’s visibility inside AI-generated answers is becoming a key valuation driver. 3
Reddit shares slipped 1.5% to $229.89 in late trade on Wednesday, extending a choppy finish to the year for U.S. growth stocks.
The move matters now because trading has thinned into year-end, which can exaggerate price swings, and investors are parsing what artificial intelligence-driven search could mean for platforms that depend on attention and advertising. 1
For Reddit, those cross-currents are landing alongside new insider-trading disclosures and fresh analyst commentary on how often the company’s content is surfaced by AI chatbots and search tools.
A U.S. Securities and Exchange Commission Form 4 filing — the document insiders use to disclose stock transactions — showed Chief Technology Officer Christopher Slowe sold 14,000 shares on Dec. 22 at prices that ranged roughly from $231 to $240. (Form 4: SEC filing PDF). 2
The filing said the sales were made under a Rule 10b5-1 plan, a pre-set program that allows executives to trade on a schedule while limiting the risk of accusations that they acted on material nonpublic information. 2
Separately, Needham analysts led by Laura Martin argued in a recent note that Reddit’s prominence inside large language models — the software behind chatbots such as ChatGPT — could become increasingly important as users shift toward AI-written summaries rather than traditional link-based search results. 3
Martin wrote that “citations are the new value driver for consumer discovery and navigation of the Open Internet.” (Needham summary via InvestorsObserver). 3
The note cited a Semrush study that found Reddit was referenced in about 40% of AI-generated responses across ChatGPT, Perplexity and Google’s AI answers, based on prompts and citations tracked between July and October 2025. The same study put Wikipedia and Alphabet’s YouTube next. 3
The InvestorsObserver report also flagged that AI systems can adjust which sources they cite over time, raising the risk that citation patterns shift away from a handful of dominant domains. 3
Reddit traded between $227.99 and $233.66 on Wednesday, and the company’s market capitalization stood at about $43.0 billion, based on late-session prices.
U.S. stocks were broadly lower in the final session of the year, with markets set to close on Thursday for the New Year’s Day holiday. 1 . 1
Investors are looking ahead to fuller liquidity when trading resumes on Friday and to the Federal Reserve’s Jan. 27-28 policy meeting; markets are currently pricing in high odds the central bank holds rates steady, Reuters reported. 1
For Reddit, traders are watching whether the stock steadies into the close after the insider-sale disclosure and whether the AI-citation thesis keeps drawing incremental buyers into early 2026, when volume typically normalizes. 2
